Sustainable operations

Beyond Non-Financial Operations

At NLB Group, we are aware of nature-related impacts, risks, and opportunities of our operations. At the same time, we define sustainable operations in a much broader sense: not only as managing our non-financial operations by being an environmentally responsible institution, but by ensuring sustainable relations with our stakeholders.

Our general objectives

decarbonize our own operations, by achieving net-zero operational emissions by 2050 or sooner,
ensure positive impacts and minimize adverse impacts of our own non-financial operations on key stakeholders,
identify and mitigate risks, and to pursue opportunities stemming from business relations with key stakeholders that might affect financial operations of us or our stakeholders.

We act responsibly towards the environment

ESG Risk Management

We take into consideration ESG factors in the procurement process.

We integrate sustainability practices in relations with our clients.

We put sustainability at heart of human resources practices.

NLB Group is committed to encouraging suppliers to act ethically, socially responsibly, and in an environmentally sustainable manner. As part of its procurement practices, it incorporates environmental and social criteria into supplier selection decisions where feasible. NLB Group actively promotes improvements in suppliers’ ESG performance, including through due diligence questionnaires.

Fundamental Principles Expected from Suppliers

NLB Group expects its suppliers to respect fundamental principles, including:

Prohibition of child and forced labour
Prohibition of abuse of disciplinary measures
Ensuring safe and healthy working conditions
Respecting the right to association and collective bargaining
Compliance with maximum allowable working hours
Providing a living wage / ensuring fair remuneration
Guaranteeing equal treatment without discrimination

Meeting these requirements contributes to decent living conditions for employees in supply chains and strengthens sustainable business practices.

Rules of Desired Conduct

NLB expects all suppliers to operate in accordance with high ethical, social, and environmental standards. This includes the following rules of desired conduct:

Ethical and Responsible Business Practices – operations must be based on honesty, integrity, and compliance with legislation; preventing corruption and unethical practices is essential.
Respect for Human Rights – prohibition of child labour, forced labour, and modern slavery, ensuring equal opportunities, fair pay, and decent working conditions.
Environmental Protection – compliance with environmental regulations, reducing negative environmental impacts, and promoting sustainable practices such as circular economy, efficient use of energy and water.
Confidentiality and Data Security – responsible handling of confidential information and implementing measures to prevent misuse or unauthorized access to data.
Avoidance of Conflicts of Interest – obligation to identify and disclose circumstances that could affect impartial decision-making.
Prevention of Corruption and Bribery – strict prohibition of offering or accepting bribes and other unlawful incentives.
Health and Safety at Work – ensuring a safe and healthy work environment that prevents accidents, illnesses, and promotes employee well-being.
Regulatory Compliance – adherence to all applicable laws and regulations, including those related to taxes, sanctions, anti-money laundering, and counter-terrorism financing.

A detailed description of the procurement process management within NLB Group’s banking members is defined by the Procurement Standard, adopted by the NLB Management Board, and other internal procurement-related acts. These documents incorporate supplier principles outlined in the NLB Group Code of Conduct. Additional information is available in the NLB Group Annual Report, under the section: Supplementary Information on Business Conduct – Sustainable Supply Chain.